How Will EVT’s $74M Pro-invest Deal Transform Its Hotel Management Game?
EVT Limited has launched EVT Connect Hospitality, a new hotel management brand, and announced the $74 million acquisition of Pro-invest Hotels, adding over 3,200 rooms under management across Australia and New Zealand.
- Launch of EVT Connect Hospitality, a third-party hotel brand management model
- Acquisition of Pro-invest Hotels with 15 long-term management agreements
- Portfolio includes ~3,200 rooms across Australia and New Zealand
- Estimated incremental annual EBITDA contribution of $8-$9 million
- Acquisition funded through existing bank debt, subject to ACCC clearance
EVT’s Strategic Move into Third-Party Hotel Management
EVT Limited, a key player in the travel and hospitality sector, has taken a significant step to broaden its hotel management footprint with the launch of EVT Connect Hospitality. This new business arm is designed to provide third-party hotel brand management solutions, targeting asset owners who prefer franchising options backed by strong local expertise.
The launch coincides with EVT’s announcement of its planned acquisition of Pro-invest Hotels (PIH), a well-established third-party hotel management company. PIH manages 15 hotels under long-term agreements, encompassing approximately 3,200 rooms across Australia and New Zealand. This acquisition is expected to seed EVT Connect Hospitality with a robust portfolio and experienced management team.
Financial Implications and Growth Prospects
The acquisition price is set at $74 million, with an additional earn-out potential capped at $30 million, contingent on EBITDA performance in 2025 and 2026. EVT forecasts that the deal will contribute an incremental $8 to $9 million in annual EBITDA, including synergies, reflecting a multiple of around eight times earnings. The transaction will be funded through EVT’s existing bank debt facility, underscoring confidence in the group’s financial position.
EVT’s CEO Jane Hastings highlighted that EVT Connect Hospitality will enhance the group’s ability to deliver value to hotel asset owners seeking flexible, third-party brand management solutions. The integration of PIH’s team and portfolio is expected to accelerate growth in EVT’s asset-light hotel management business, a strategic pillar for the company’s future expansion.
Portfolio and Market Positioning
The Pro-invest Hotels portfolio includes prominent brands such as Holiday Inn Express, Kimpton Margot, Voco, Hotel Indigo, and Sebel, spread across major cities and regional hubs. This diverse portfolio strengthens EVT’s presence in both Australia and New Zealand, providing a platform to leverage EVT’s broader group capabilities in operations, distribution, and technology.
EVT Connect Hospitality aims to offer hotel owners a compelling alternative by combining global brand franchises with local operational excellence and flexible service models. This approach aligns with evolving market demands for asset-light, scalable hotel management solutions that maximise asset value without the capital intensity of ownership.
Regulatory and Completion Outlook
The acquisition remains subject to informal clearance from the Australian Competition & Consumer Commission and other procedural conditions, with completion expected later in 2025 or early 2026. While these approvals introduce some timing uncertainty, EVT’s board has expressed strong support for the transaction as a key growth initiative.
Overall, EVT’s move signals a strategic pivot towards expanding its hotel management services, leveraging both organic growth and targeted acquisitions to build a more diversified and resilient earnings base in the competitive hospitality sector.
Bottom Line?
EVT’s acquisition of Pro-invest Hotels and launch of EVT Connect Hospitality mark a pivotal expansion in its hotel management strategy, setting the stage for accelerated growth in asset-light operations.
Questions in the middle?
- How will EVT integrate Pro-invest Hotels’ management team and systems with its existing operations?
- What are the key risks related to ACCC clearance and potential regulatory hurdles?
- How might EVT’s expanded third-party management model impact its competitive positioning against larger hotel groups?
